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Is your building still earthquake safe? A tax deductible assessment will soon be available

What a week it has been for New Zealand! It now feels as though the quakes are easing in the most part and we now must get back to normal life. Some of us have damaged homes and businesses scaling from severe to minor, so what do you do?

If you haven’t already had your business premise inspected by the local council Structural Engineer this should be happening soon, they approve the safety of the building for people to re-enter and use for normal operations. So what about any structural damage that may occur after the inspectors visit during aftershocks? Or the general feeling of insecurity in your post-earthquake building?

We need to be prepared and safe, and it is for this reason the IRD is discussing and will soon decide on how a Detailed Seismic Assessment report can be tax deductible for businesses.

Here is what you need to know:

A Detailed SeismicAssessment (DSA) is a report describing the likely impact of an earthquake on a building. Its potential vulnerabilities, possible methods of fixing these vulnerabilities, and an estimated cost. It includes an earthquake rating expressed as a percentage under the new building standards – 34% or lower being earthquake vulnerable.

Who can obtain a DSA?

Property owners renting out commercial or residential buildings

Property owners who use their home or separate premise for their own businesses

Leaseholders if the safety of that building may impact on their business.

Likely DSA tax deductible situations:

To satisfy existing or potential tenants of a building’s safety

To identify possible damage after an earthquake

To evaluate the safety of someone else’s building where the safety of that building may impact on another’s business.

To obtain insurance for a building for contractual terms or reduce the cost of associated premiums

Likely DSA non-tax deductible situations:

In a capital project to seismically strengthen a building

A capital project to develop or improve a building

Of course there are conditions that must be met for tax deductibility, including an identified need or occasion, or whether there will be potential creation of an identifiable asset or enduring benefit, all of which we can help you with.

The piece of mind a DSA will provide is priceless when we remember that our organisations are made up of Mums, Dads, and the children of our community.

If you are considering a DSA for your buildings we can help you determine tax deductibility and identify other tax deductible expenses you may be missing out on.